Insurance agents can choose either in captivity or as independent agents. Captive agents only work for an insurance company, while an independent representative does not work for a particular insurance company, but may sell policies from a number of companies. Filed Under: Massagent | News – Tagged Ads With: agency news, Allstate Agency Agreement, Beamer and Wright, becoming an Allstate Agent, Dirk Beamer, How do I become an Allstate Agent in Massachusetts?, How do I become an allstate agent?, my insurance news, what are the pros of an becoming Allstate Agent, What are the Allstate Agency Agreement include? Exclusive insurance agents or captive agents are responsible for the sale of policies for a single insurance company; Independent agents can sell the rules of many different companies. In both cases, agents must be licensed in the state in which they operate and are limited by the scope of those licences. For example, agents with a “life and health” licence can only sell life and health insurance, while agents with in-kind and accident licenses can sell insurance to homeowners and owners. In addition, all agents can sell annuities, but a securities license is required to sell variable annuities. Many people divide insurance agencies into categories based on the type of insurance they sell. However, there is a second important way to categorize agents in the insurance industry: agents in captivity versus independent agents. Differences between captive and independent agents can affect the course of the officers` day and the type of insurance they specialize in. It can also determine the reasonably expected income while active in this insurance sector. In many cases, the parent company may push its captive agents to sell certain policies or meet certain sales quotas, which is often not the best product for the customer.
Independent agents are generally better for clients because the agent can look for the best policy for this client`s requirements. The only drawback is that an independent agent may not have a specific knowledge of a particular company`s products. My point here is that if you are a life insurance agent or a captive life insurance agent, you will learn to specialize.